Syria repairs relations with Arab states, Switzerland's banking headache and TikTok fans lobby Congress
March 2023
Hello and welcome!👋
The last month of Q1 was packed with consequential events, including Xi Jinping’s sit down with Vladimir Putin, escalating protests in Israel over proposed judicial reforms, Silicon Valley Bank’s collapse, and realisation of the AUKUS submarine pact.
This edition delves into Bashar al Assad’s diplomatic endeavours, Credit Suisse’s shocking demise and TikTok creators lobbying members of Congress.
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DIALOGUE WITH DAMASCUS
Syrian President Bashar al Assad flew to Abu Dhabi on 19 March and received a ceremonial welcome, complete with military honours and a meeting in the royal palace.
The UAE’s leader, Sheikh Mohammed bin Zayed al-Nahyan, said both sides held “constructive talks” and “explored ways of enhancing cooperation to accelerate stability and progress in Syria and the region.”
Assad’s latest visit to the Emirates is a sign of his fading pariah status in the Middle East. When the Syrian civil war began in 2011, the Arab League suspended the country’s membership and the Arab Gulf states pulled their envoys from Damascus. Qatar, Saudi Arabia and the UAE even backed opposition fighters against Assad’s government.
But in the years since the conflict erupted, the UAE’s stance has shifted to rapprochement with Assad. In 2018, Abu Dhabi normalised relations with Syria despite criticism from the US. Diplomatic and business exchanges between the two continue to deepen.
Elsewhere, Jordan and Egypt are slowly mending ties with Syria, and Assad also travelled to Oman recently to speak to the Sultan.
Although Syria’s reintegration still faces hurdles (not least Qatar, which remains appalled by the war’s atrocities), February’s deadly earthquake is being used as a tool by Assad to ease his isolation.
However, analysts and insiders say the crucial factor is geopolitics. Assad’s vital ally Vladimir Putin is distracted with Ukraine and NATO, plus efforts to limit Tehran’s influence in the Middle East are leading to interesting partnerships (see: Saudi-Iran detente brokered by China).
Speaking of breakthroughs, Saudi Arabia is reportedly in talks to resume consular services with Syria, potentially in the second half of April. If that goes ahead, it will be a major step in allowing Assad’s government in from the cold.
REPUTATION ON THE LINE
A marriage of inconvenience. A shotgun wedding. An unhappy union.
The speedy sale of Credit Suisse to UBS prevented a catastrophic banking crisis, but the takeover has raised concerns about the integrity of Switzerland’s financial infrastructure.
While UBS negotiated a steep discount to buy its rival (offering to pay US$3.25 billion), the fallout from the acquisition is staggering. The banks’ combined assets will be roughly twice the size of the Swiss economy. Too big to fail indeed!
With a history spanning 167 years, Credit Suisse is entitled to some legacy problems. However, the lender had experienced troubles for many years now, from criminal clients to corporate espionage. [In the past, I also spent hours in the newsroom writing scripts on its woes.]
Switzerland’s own Neue Zürcher Zeitung slammed the arrogance of Credit Suisse’s leadership. “The principle is always the same: A healthy bank is being badly treated – whether by negative headlines, adverse market conditions or unjustified billion-euro fines. Self-criticism? Not here. As if Credit Suisse's years of mismanagement, scandals and failed strategies just happened.”
The editorial board at the Financial Times noted frustration among Swiss politicians with the rescue package, citing the lack of parliamentary debate and risks to taxpayers’ money. “The reputational damage to Swiss banking will be significant.”
As UBS quickly reconciles its new identity, investors and employees will be following the updates nervously, says The Economist.
“Ralph Hamers, chief executive of UBS, must adjust from running the profitable institution he inherited in 2020 to guiding a chaotic ship through choppy waters…Only bankers with the most polished Rolodexes have any chance of surviving the cull.”
TIKTOK USERS GO TO WASHINGTON
When the boss of TikTok appeared on Capitol Hill on 23 March, the news coverage mainly focused on his grilling by US lawmakers.
CEO Shou Zi Chew fielded questions - with varying degrees of success - on the social media platform’s links to the Chinese government, its data privacy policies and impact on children. But TikTok’s lobbying campaign went far beyond the Congressional hearing.
According to the New York Times, dozens of creators and influencers were recruited for an all-expenses paid trip to Washington to persuade elected officials of the app’s transformative power. Banning TikTok would hurt their livelihoods and disconnect them from communities, they argued.
In addition to promoting #keeptiktok and #savetiktok videos, the company has bought ad space in the US capital. “Safety. Privacy Control. Your priority. Our commitment,” read one train station display as part of the PR blitz.
But in a bizarre turn of events (and because the interweb can be a weird place), Chew’s moment in the spotlight has made him an object of affection. The 40-year-old Singaporean has inspired what Insider calls “thirsty fan tributes and cutesy montages”.
Is this an element of TikTok’s public affairs strategy? Probably not. Though having your CEO referred to as a “TikTok Zaddy fighting for us” keeps the conversation moving.
Thanks for reading! Take care and stay curious, Sara x